The purpose of this study is to analyze development and current status of regional public enterprises, find relevant issues and come up with policy alternatives for further improvement.
The majority of the regional public enterprises in Korea provide basic public services such as water supply, sewerage, hospital, and public transportation. The policy to allow public enterprises to provide water supply started in order to increase the distribution of water in the rural area till 1980s, and as of 1988, Korea’s water supply penetration rate is about 74.5%, which is much lower in comparison with developed countries. In terms of sewerage, the penetration rate is 25%, which is only 1/3 of other countries such as England (97%) and United States (72%).
The importance of public hospitals has decreased drastically due to fast growth of private hospitals. Thirty-two hospitals are receiving financial support from the government and only five of them have a surplus. Public enterprises on subways have been playing an important role as a part of public transportation. Although, two metropolitan subways, Seoul and Pusan, are running on deficit, the rate of public transportation users is constantly increasing. In the case of Seoul Metro, the rate was only 6.4% in 1984, however, the rate increased to 13.7% in 1988.
After the initiation of the National Development Policy in 1960, due to national priority, the support has been focused on industrial public enterprises rather than social public enterprises; however, after the pro-democracy movement in 1980s, ideas such as national welfare and social development appeared. It is of utmost importance that public enterprises, which are to provide basic welfare to its people, must be developed quantitatively and qualitatively. For this development, enterprises must reject authoritative management and focus on its own autonomy. Furthermore, it should establish a corporate responsibility management system and increase the number of expert human resources, and above all, the government’s financial support must be expanded for regional public enterprises. In addition, public services must be provided evenly and along with increasing role of existing public enterprises, the development of new regional public enterprises should be supported.
지방공기업의 과제와 발전방향
|Series Title; No||연구보고 / 90-03|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Macroeconomics|
|Holding||KDI; KDI School|